Deficit Financing of Government of Maharashtra: A Study

The present research Study examines various deficit indicators at state level is important because the state government deficit also increase the total deficit of the state. When the government of a country resort to deficit budget as a means for raising funds, it is known as deficit financing Budget deficit means that the current expenditure of the government is more that its current receipts. Thus, the deficit represents the gap between the current expenditure and current income of the government and when this gap is filled by obtaining funds by means other than taxation. This research paper focuses on examining the Deficit Finance, Revenue Deficit, Budgetary Deficit, Fiscal Deficit, Primary Deficit, Trends in Parameters of Deficits of Government of Maharashtra etc. The core material for the study was arranged by means of secondary data collected through gathered from published and unpublished records. The study is limited to a twenty four year especially in the post reforms period namely 1991–92 to 2014–15(BE). The foregoing discussion provides the analysis of the level of deficit of the government of Maharashtra during the period 1991–92 to 2014–15. It is very much clear that the level of Fiscal Deficit and Primary Deficit is significantly higher than the Revenue Deficit. But this does not mean that Revenue Deficit is not a problem before the state government. No doubt, it is a problem but of lower level. The noteworthy thing is that in the last some years the government has to some extent succeeded in controlling fiscal deficit, but has not succeeded in reducing the level within the provisions in the fiscal responsibility and budget management Act.